This is the first installment of my new series that will be going over tips that will help you be a more successful trader of cryptocurrencies. There are all different kinds of options when it comes to trading strategies, each of which comes with its own version of experts who are happy to declare their successes and have you view them as your trading guru.
I am not that person.
I am not a day trader, let alone an expert, but I am going back to my roots in this channel. By that I mean as I am learning about these concepts I will be passing along what I’ve discovered to you.
To begin this series I think it’s appropriate to cover some basic concepts that will serve you well to remember when you are considering getting into trading cryptocurrencies, whether you want to be a day trader, a swing trader, or even a long time investor.
First, I will always strongly recommend is to invest in cryptocurrencies that you understand.
Seek out information like what the dev team is like, how long they’ve been working towards building their platform or product, other projects they’ve been a part of, and how often they make updates and improvements to the project. A lot of information can be found on their GitHub account. If you want to know how to analyze a project’s GitHub account, check out this link.
Knowing what you are investing in or trading, and keeping up to date on the project’s status is important because this will help you number one be less inclined to panic sell if the price takes a dip.
And number two, it will help you better be able to understand future price movements, for example how a new update or problem will affect the price.
Next, its very important to be aware of the general trend in the cryptocurrency markets.
Generally these markets are either in a bear market, which is when the prices are trending down, or a bull market, which is when prices are trending up.
As a trader it is much more difficult to be profitable in a bear market unless you are a seasoned trader and know the appropriate moves to make like how to short a coin for example. In a bull market it is easier to make a profit because prices are increasing, however it’s also important to be weary of who you take advice from in a bull market. Those who can be and have been successful in a bear market are most likely seasoned traders with valuable information, if they are generous enough to share their trade secrets.
Lastly, it’s very important to have a plan set in place.
By this I mean you need to have goals set for yourself profitability wise and stick to them.
Traders who become greedy tend to take bigger risks and are more likely to lose sight of their goals and incur more losses.
Never invest money that you cannot afford to lose. There are countless tragic stories of people who made rash decisions to take out second mortgages on their homes or rack up credit card debt they cannot otherwise repay all in the hopes of making fast easy money. There are thousands of people who participate in these cryptocurrency markets, all of which have very different experiences even though the prices are the same for each person. If you panic sell, it’s most likely because you don’t know much about the coin you are holding and you have too much at stake to make a rational decision. If you find yourself buying a coin because others are promoting the crap out of it, and you don’t actually know anything about it, chances are you’re getting in too late, and you’ll be stuck holding a coin hoping for it to pump again, which might take a very long time, or it might never happen again.
I know that all of this might seem like common sense, but when the pressure is on and you’re dealing with money that you care about, your judgment can get clouded with doubt and panic.
That is not the mindset you should be in when making decisions about your investments.
Instead, take a deep breath and remember these tips, over time you will develop the kind of experience and knowledge that will serve you well in the long term. If you make mistakes, don’t forget them or run from them, analyze what happened and learn from them so they don’t happen again and you can begin to be more successful in the future.
In subsequent videos in this series I will be going over much more specific trading strategies and concepts for day traders, swing traders and even those who are interested in trading bots too. If there is anything you would like to learn more about, please feel free to leave them in the comments down below. Please don’t ask to go over specific coins, that is not what I will be focusing on in this specific series.
While all 3 named points sure are valid and important, three of my personal high ranked principal advices for crypto newbies are :
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Yes, thank you for supplementing.
Heck yeah! Glad you are doing these Heidi!! 😁
It's about time right? Thanks for the comment :)
You have been posting great articles for years Heidi. This is just another great idea that is helpful to everyone!
I still plan to host a Steem Music/Art Festival in Denver soon!
I hope to meet you in the near future, and hear some of the great stories I am sure you have!! 😁
Very good points, but most of the people have no idea what they are doing!...Just wanna make quick $$$....:)...
Which is exactly why I have created this series to help them :)
...and you doing it great!...:)....
So far Steem and Smoke have been the best for me.
Are you over on smoke.io yet ?
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I haven't checked that one out yet, what is it? How do you like it?
Smoke is the best .... and cheap at 6 cents
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Wow wow, those cryptotips should have a five-star rating. I think many people are just being on different platforms without having a lasting trading antics.
Hi, Heidi! I love to see people getting into crypto! I am starting a new series where I talk about how to make income with cryptocurrencies and I will be talking about a lot of projects that many people have not heard of. Follow me to be the first to read about these projects that are actually worth investing in because sometimes it can be daunting when trying to sort the legit projects from the not so legit ones. These are my golden rules that all coins must have: An active community, An active Dev or Dev team that is highly involved with the community surrounding the project, regular updates to the github, and enough volume to get in and out of that coin. I am following you and look forward to more crypto talk!
Awesome Hedi, keep up the great work!!
Thanks Bailey.
Great post! I think that having a plan and a good money management is the key. Bearish or bullish 😊
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Indeed!
people should buy crypto first before they trade
It's kind of a requirement to own crypto if you want to trade with it ;)
Why is it that in the crpto space traders think they will increase there holdings by trading while in the traditonal trading . Its seens as either a source of income or a hedge . In fact option trading was first just use as heding . ....Now will can predicit what will happend. The charts are wrong 45 percent of the time. So your basically better just flipping a coin.
Jeez! no fault to you Heidi, but do not go here!
You start off making the same mistake most others make, which is to interchange the terms trading and investing. These are totally different fields!
Trading is getting into and out of a trade on the same day or within a few days, and doing so with a set entry level, target level AND with a STOP LOSS level in place. Hands up those who have ever set a stop loss level on a crypto they have bought? No! Well that is because you are NOT trading, in-fact you are not even investing! What you are doing is SPECULATING and hoping :).
Market cap and daily volume are the most important things to consider when looking for a market to trade. Cryptos are not yet ready for trading. For God's sake MacDonalds alone has more of a market cap than the whole crypto market put together!
Sure, please do go ahead and buy and speculation on all the crypto you have researched with Heidi's guidance above and funds you can afford to lose (even call it investing if you like), but take this advice below when it comes to trading.....
Stay safe friends.